Wall Street Stays Firm While Oil Prices Retreat Fast/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ U.S. stocks hovered near record highs on Friday, continuing a months-long rally despite slowing momentum. Oil prices fell sharply as geopolitical tensions eased in the Middle East. Corporate earnings and cautious investor sentiment shaped market movement.
Markets Near Record Highs Quick Looks
- S&P 500 rose 0.2%, near all-time high
- Dow Jones climbed 215 points (+0.5%)
- Nasdaq increased 0.2% in early trading
- Oil prices plunged: U.S. crude -2.4%, Brent -2.5%
- Middle East ceasefire eased supply fears
- Levi Strauss dropped 9% despite strong earnings
- Amcor rose 3.3% after CFO announcement
- U.S. economic data delayed due to government shutdown
- University of Michigan consumer sentiment data awaited
- Gold rebounded, Treasury yields fell
Deep Look: U.S. Stocks Stay Strong While Oil Prices Slide
NEW YORK – Wall Street continued its steady climb near record highs Friday, though signs of slowed momentum emerged as investors processed mixed signals from corporate earnings and geopolitical developments. Meanwhile, oil prices experienced a significant pullback, easing inflationary concerns across global markets.
The S&P 500 inched up 0.2% early Friday morning, extending a strong performance that has seen the benchmark index rise roughly 35% since April. The Dow Jones Industrial Average added 215 points (0.5%), while the Nasdaq Composite gained 0.2%. Despite the gains, the market has shown signs of cooling off following an aggressive rally fueled largely by tech sector growth and AI optimism.
Much of the week’s market hesitation stems from a partial government shutdown, which has delayed critical economic reports. With key indicators like employment and inflation metrics on pause, traders are left searching for direction.
Investors were looking ahead to the University of Michigan’s consumer sentiment index, expected later Friday, to provide insight into consumer attitudes in the current economic climate.
Amid a mostly quiet session, several companies posted notable moves. Levi Strauss dropped 9%, even after reporting better-than-expected quarterly profits. The jeans maker’s full-year forecast aligned with Wall Street expectations, but its stock had already surged 42% in 2025, leaving little room for disappointment. Analysts point to elevated investor expectations as a key reason for the pullback.
Packaging firm Amcor rose 3.3% after naming a new chief financial officer and reaffirming its profit outlook for the upcoming fiscal year. The announcement boosted investor confidence in the company’s strategic direction.
Elsewhere, critics warn the broader market may be overpriced, especially in sectors like artificial intelligence. The rapid climb in share prices, particularly among growth and tech stocks, has far outpaced actual corporate earnings. Analysts suggest valuations could normalize through either a drop in prices or a rise in profits.
The most significant action of the day came from the oil markets, where prices tumbled following a major geopolitical development. A ceasefire agreement between Israel and Hamas took effect in Gaza, reducing fears of broader regional conflict that could disrupt oil supplies.
As a result, U.S. benchmark crude dropped 2.4% to $60.03 per barrel, while Brent crude, the global standard, fell 2.5% to $63.58. The fall in prices signals lower short-term supply risk and could ease inflation pressures that have concerned both policymakers and investors.
Overseas, market movements were largely muted. European indexes showed minimal changes, while Asia delivered a mixed session. Hong Kong’s Hang Seng Index fell 1.7%, and Japan’s Nikkei 225 declined 1%. In contrast, South Korea’s Kospi rose 1.7% after reopening from a holiday.
In the bond market, yields on U.S. Treasurys retreated, with the 10-year yield falling from 4.14% to 4.09%. The drop reflects increased investor appetite for safer assets amid uncertainty and profit-taking in equities.
Meanwhile, gold prices bounced back, reclaiming the $4,000 per ounce level after a sharp decline on Thursday. The rebound suggests a return to defensive positioning by some investors.
As Wall Street hovers near its peak, the coming days may hinge on fresh data, geopolitical stability, and corporate performance. While markets have shown resilience, signs of fatigue could become more pronounced without renewed catalysts for growth.
You must Register or Login to post a comment.